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March 28, 2023

Romanian economy, in technical recession, according to INS

The decline experienced in Q1 was limited by agriculture, IT&C and commerce, and the negative effect was fueled by the net export, statistic data reveal.

The National Statistics Institute (INS) yesterday announced the estimative data for the first quarter of the year, which confirms the evolutions announced in the signal release, i.e. a 0.1 pc decline of the Gross Domestic Product (GDP) against Q4 2011, but an increase of 0.3 pc against the similar interval of the previous year.The GDP amounted to RON 109.7 bln, in current prices adjusted series, and RON 145 bln in current prices adjusted with seasonal factors. As the GDP declined for two consecutive quarters against the previous three-month intervals, the economy is considered to have entered technical recession.In terms of using the GDP, demand slightly picked up by 1 pc during the first quarter of 2012, against the same interval of 2011, due to a significant increase of the gross fixed capital formation (+11.8 pc). Net export had a negative effect upon the GDP, following the significant reduction of the volume of exports of goods and services (-2.9 pc), compared to imports (-1.2 pc).The economic decline in Q1 was limited by the good performance registered by agriculture, information, communications and commerce, while the most severe declining figures were in public administration, the construction sector, real estate transactions and industry. Per sector, agriculture, forestry and fishing registered the highest growth rate (4.2 pc), followed by IT&C (2.6 pc), retail and wholesale trade, repairs of automobiles and motorcycles; transport and storage; hotels and restaurants (0.7 pc) and shows, cultural and recreational activities; repairs of household products and other services (0.6 pc).Important declines of the activity volume were registered by public administration and defence, social insurances in the public system, education; health and social assistance (-5.8 pc) and professional, scientific and technical activities; activities of administrative services and support services (-5.0 pc). A lower decrease was registered by the industry (-0.4 pc), real estate transactions (-1.0 pc), constructions (-1.2 pc) and financial intermediation and insurances (-1.2 pc).The increase of the volume of product taxes collected by the state budget (+6.0 pc), correlated with the significant decline of subsidies on paid products (-29.2 pc) led to an increase of net product taxes by 6.8 pc.Average salary, up 0.6 pc in april against march

According to the INS, the net average salary advanced in April by 0.6 pc, or RON 10, against the previous month, to RON 1,553, with the highest wages being paid by the financial intermediation sector (RON 4,295) and the lowest by the hotel and restaurants sector (RON 853), Mediafax reports. Most branches of the economy reported increases of the net average salary, due to occasional bonuses (including quarterly premiums and Easter bonuses), allowances from the net profit and other funds (including meal and gift tickets), salary negotiations, production achievements or higher incomes (depending on contracts) reads the INS press release.The most significant increases were registered in the extraction of crude oil and natural gas (27.6 pc), the production of coke and other products resulting from the processing of crude oil, the publishing industry and metallurgy (between 15 pc and 18.5 pc). The most significant decreases were registered in the tobacco industry (31.8 pc) and the production of basic and elaborate pharmaceutical products (21.4 pc). Against April 2011, the net average salary increased by 3.7 pc. The real wage gain index against the same interval of last year was 101.9 pc.

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